Trump Media & Technology Group’s stock is tumbling again after the company announced a massive new influx of shares. The struggling company is rapidly losing money, and a new stock offering could help it stay afloat.
But there’s a downside to going back to the market with new shares: A new public stock offering of 21.5 million shares announced Monday would add more than 15% more stock to the publicly available shares of the Truth Social owner. That would substantially devalue existing shareholders’ stakes — including that of former President Donald Trump.
Shares of TMTG (DJT) fell more than 15% Monday. The stock had rocketed higher in recent months in anticipation of merging a blank-check acquisition company with Trump’s media business. But it has lost more than 60% of its value from its peak on March 26, the day after the merger was completed and it started trading publicly as TMTG.
Like whats your point? Are you saying Trump would or would not put his stake in Truth social in a blind trust?
I’m correcting you when you implied that this a practice of decades ago. It is not. It has been the standard. Trump is the exception. I don’t foresee that changing. So Trump failing to do so is even worse than if it was some outdated practice.
Oh cool. So he’ll be putting his shares in a blind trust then?
Even the blind trust knows that’s a terrible investment.
In all seriousness, what’s the over under whether the company will be delisted from nasdaq this month?
not gonna happen. it’s taken some hits but there is a good enough chance that Trump will be the next president that it’s not going anywhere.
Reality really isn’t agreeing with you here bud ;)
In what way?
Have you been following the stock at all?
Yeah its down. Whats your point?